South Africa’s looming gas cliff has been brought closer to reality by the electoral conflict impasse in Mozambique, which resulted in “gas-shedding” at the height of the festive season as industrial users warned that the government needed to step up efforts to avert the looming shortage of LNG gas in the country.
This comes as petrochemicals giant Sasol confirmed last week to have reduced production of natural gas at its Central Processing Facility (CPF) in Temane, Mozambique.
Alex Anderson, Sasol’s senior manager for group media relations and external communication, said the pipeline was not and has never been closed but that under prevailing circumstances in Mozambique, supplies had to be closely monitored.
“As a result of this, we have informed various gas and customer users, including Sasol internally, that we are not able to supply gas at full production rates in order to maintain stability of the gas value chain infrastructure and pipeline network,” Anderson said.
“The situation around the CPF is under control and there has been no security or perimeter breach. Our priority is the safety of our people, service providers, and assets.”
Anderson said Sasol was engaging with government stakeholders both in South Africa and Mozambique, and was continuing to monitor the situation.
Meanwhile, the Industrial Gas Users Association South Africa (IGUA-SA) said Sasol confirmed at the end of December that production had stabilised and gas supply levels had returned to normal.
Jaco Human, IGUA-SA CEO, said while the return to normal gas usage was positive news for South African industrial gas users, the short-term curtailment in supply once again emphasised the significant impact any possible disruption can have on South Africa’s large gas users, who contribute approximately R700 billion annually to GDP and support around 100 000 direct jobs in industries such as mining, petrochemicals, glass, food and beverages, steel, and paper.
“It is for this reason that the Industrial Gas Users Association of Southern Africa (IGUA-SA), remains concerned about the apparent lack of action from the South African government to urgently advance a comprehensive and sustainable solution to the country’s pending gas crisis, in consultation with the industrial users of gas,” Human said.
“Given that Sasol has committed to gas supply only until the end of June 2028, we must urgently agree on a government-supported framework for gas supply beyond the Sasol cut-off or face catastrophic consequences for the national economy, which is dependent on a stable and affordable gas supply.”
South Africa relies heavily on gas imports through the Rompco pipeline, which transports gas from Mozambique’s onshore fields to Sasol’s Secunda industrial complex in Mpumalanga, before distribution to Gauteng and KwaZulu-Natal.
The unrest in Mozambique erupted after the October election, which declared ruling party’s candidate Daniel Chapo as president. Tensions escalated further on Monday after the Constitutional Council confirmed the victory of the Frelimo party.
The Pande-Temane gas fields in Mozambique are nearing the end of their life and Sasol announced last year that from June 2026, it would, as a result, no longer be able to supply gas to industrial users and traders in Mpumalanga, Gauteng and KwaZulu-Natal.
One of the measures to address this potential crisis is the Zululand Energy Terminal project in Richards Bay, which will be developed by the Dutch-based Vopak Terminal Durban and Transnet Pipelines consortium.
Sasol and Eskom in September signed a memorandum of understanding in new efforts to address a looming ‘gas cliff’ in South Africa, one the first public signs of serious and concerted efforts by government.
BUSINESS REPORT